HB 5089 — CMS-SETTLEMENT-AMOUNT APPROVAL

*LRB10420082HLH33533b* HB5089 104THEngrossed GENERALLRB104 ASSEMBLY20082 StateHLH of33533 Illinoisb andAN 2026ACT HB5089concerning IntroducedState 2/10/2026,government. by Rep.

Rick Ryan SYNOPSIS AS INTRODUCED:

ILCS 405/405-105 was 20 ILCS 405/64.1 Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois.

Provides that any public liability claim filed against the State of Illinois or any public liability claim filed against a State employee on the basis of an occurrence in the course of the settlements exceeding $250,000 (rather than $100,000).vernor, in cases of LRB104 20082 HLH 33533 b A BILL FOR HB5089 LRB104 20082 HLH 33533 b AN ACT concerning State government.

(3) Prepare a plan for centralizing the purchase of property and casualty insurance on State property under a HB5089 Engrossed - 2 - LRB104 20082 HLH 33533 b master policy or policies and purchase the insurance contracted for as provided in the Illinois Purchasing Act.

(7) Prepare and, in the discretion of the Director, implement a plan providing for the purchase of public liability insurance or for self-insurance for public liability or for a combination of purchased insurance and self-insurance for public liability (i) covering the State and drivers of motor vehicles owned, leased, or controlled by the State of Illinois pursuant to the provisions and limitations contained in the Illinois Vehicle Code, (ii) covering other public liability exposures of the State and its employees within the scope of their employment, and HB5089 Engrossed - 3 - LRB104 20082 HLH 33533 b (iii) covering drivers of motor vehicles not owned, leased, or controlled by the State but used by a State employee on State business, in excess of liability covered by an insurance policy obtained by the owner of the motor vehicle or in excess of the dollar amounts that the Department shall determine to be reasonable.

HB5089 Engrossed - 4 - LRB104 20082 HLH 33533 b Subsequent to payment of a claim on behalf of an employee pursuant to this Section and after reasonable advance written notice to the employee, the Director may exclude the employee from future coverage or limit the coverage under the plan if (i) the Director determines that the claim resulted from an incident in which the employee was grossly negligent or had engaged in willful and wanton misconduct or (ii) the Director determines that the employee is no longer an acceptable risk based on a review of prior accidents in which the employee was at fault and for which payments were made pursuant to this Section.

The State agencies, officers, boards, commissions, and HB5089 Engrossed - 5 - LRB104 20082 HLH 33533 b universities so charged shall reimburse the Department by vouchers drawn against their respective appropriations.

In addition to any other purpose authorized by law, moneys in the Fund shall HB5089 Engrossed - 6 - LRB104 20082 HLH 33533 b be used, subject to appropriation, to pay these or other temporary total disability claims of employees of State agencies, officers, boards, commissions, and universities.

For claims filed on or after July 1, 2013, the Department shall retain responsibility for certain administrative payments including, but not limited to, payments to the private vendor contracted to perform services under subdivision (10b) of this Section, payments related to travel expenses for employees of the Office of the Attorney General, and payments to internal Department staff responsible for the oversight and management of any contract awarded pursuant to subdivision (10b) of this HB5089 Engrossed - 7 - LRB104 20082 HLH 33533 b Section.

HB5089 Engrossed - 8 - LRB104 20082 HLH 33533 b (10b) No later than January 1, 2013, the chief procurement officer appointed under paragraph (4) of subsection (a) of Section 10-20 of the Illinois Procurement Code (hereinafter "chief procurement officer"), in consultation with the Department of Central Management Services, shall procure one or more private vendors to administer the program providing payments for workers' compensation liability with respect to the employees of all State agencies, officers, boards, commissions, and universities.

If the chief procurement officer procures multiple contracts applicable to one or more State agencies, officers, boards, commissions, and universities, each agency, officer, board, commission, or university to which the contract applies shall be designated as the agency, officer, board, commission, or university that shall enter into the HB5089 Engrossed - 9 - LRB104 20082 HLH 33533 b contract and shall be responsible for the contract.

(B) ensuring claims adjusters are available to provide testimony or information as requested by the HB5089 Engrossed - 10 - LRB104 20082 HLH 33533 b Office of the Attorney General;

and (iii) a settlement of any public liability claim against the State or a State employee shall require an unqualified release of any right of action against the State and the employee for acts within the scope of the employee's employment HB5089 Engrossed - 11 - LRB104 20082 HLH 33533 b giving rise to the claim.

The payment of any award HB5089 Engrossed - 12 - LRB104 20082 HLH 33533 b of the Court of Claims entered against the State relating to any public liability self-insurance claim shall act as a release against any State employee involved in the occurrence.

In no event shall an amount in excess of HB5089 Engrossed - 13 - LRB104 20082 HLH 33533 b $150,000 be paid from this plan to or for the benefit of any claimant.

When the Attorney General has filed an appearance in any proceeding concerning a wage claim settlement or judgment, the Attorney General shall certify to the Director that HB5089 Engrossed - 14 - LRB104 20082 HLH 33533 b the wage claim is valid before any payment is made.